Home foreclosure notice makes a great impact upon owners’ mental, financial and physical health. Apart from this foreclosure acts as a negative booster that spoils the Fico ratings completely. FICO ratings determines the credit worthiness and it depicts how likely you are to pay back a loan on time. Once the stamp of foreclosure is posted to the credit report, person is left with nothing. It pulls down the credit score badly and its effect lasts for at least 7-8 years to the credit report. Presence of foreclosure in credit report is often reviewed as negative by the lenders and other financial institutions.
- Home foreclosures make a long-term effect on your credit worthiness and make it difficult to obtain new credits at competitive rates.
- Lenders are always in hunt of such individuals whose fico rating is poor. They take advantage of the situation and charge them with high interest rates on the loan they have applied for as they know person is needy and it would be difficult for them to arrange loan.
- You might face difficulty in approving a loan or a credit card from the lender.
- Your credit report may drop down by 200-300 points that mean if before foreclosure you score is 700 then it will be ranging between 400-500 post foreclosure. This drop reduces the chances of getting automobile loans, property loans, insurance and other loans.
This is untrue that once foreclosure reflected to your credit report can never let you stand financially for life time. It might be difficult to improve but it isn’t impossible. You can improve your Fico Ratings and rebuild your credit worthiness by taking control on your debts and clearing the payment history. The effect of foreclosure can diminish early if you take specific initiatives to improve the credit score. Try to take benefits of secured credit cards, stay active on all other monthly installments and debts, check the credit unions, take some time to apply for new debt and pay your previous as well as current bills on time.
Get in touch with 700 Fico club if you want to improve your Fico ratings. Our professional financial advisors follow the ethical procedures and help you in uplifting your credit score. If you incur any of the credit related issues, feel free to speak to our experts. We pride to maintain the privacy of our clients. Call us or fill our form online and discuss your queries. Our proficient experts with guide you about what do’s and don’ts you should perform to maintain healthy a credit score.